Pandemic insurance is poised to move from being a niche product to an essential one for sports and music organisers around the world, which will challenge insurers, London-based analytics company GlobalData says.

The organisers of Wimbledon are expected to receive a payout of more than £100 million ($198.3 million) after paying around £1.5 million ($2.98 million) a year in pandemic insurance premiums since the SARS outbreak 17 years ago.

GlobalData says the news of Wimbledon’s payout is expected to trigger a sharp spike in the popularity of pandemic insurance, which will challenge insurers given the significant risk attached to the product.

The unprecedented disruption to events caused by COVID-19 and the payout to Wimbledon “will surely see all event organisers around the world look to invest in this product in the future,” GlobalData analyst Ben Carey-Evans said.

Melbourne’s Grand Prix, Sydney’s Vivid festival, the English Premier League, golf’s The Open and many other sport and entertainment events around the world have been cancelled or postponed due to the coronavirus emergency, causing losses of billions of dollars to organisers.

In contrast, Wimbledon was one of the few events prepared for COVID-19. The organisers paid out about £25.5m ($50 million) over the past 17 years and it is set to recover around £114 million ($224.29 million).

“Insurance represents damage limitation for the [tennis] competition and it will find itself in a much stronger position than most other events in the world during this period,” Mr Evans said.

GlobalData’s SportCal team estimate Wimbledon would have earned around $US160 million ($253.51 million) in media rights, $US151 million ($239.18 million) in sponsorship and $US52 million ($82.37 million) in ticket sales from the annual event. Cancellation means the organisers will save on staff wages and $US38.7 million (61.3 million) in prizemoney this year.